1. WELCOME TO THE 2009-10 BUDGET HEARING AND ANNUAL MEETING OF THE SCHOOL DISTRICT OF SOUTH MILWAUKEE

3. THE 2009-10 SCHOOL YEAR  Continue work to improve academic achievement through high standards and rigorous curriculum.  $1,123,621 in reductions - the gap between revenues and expenditures.  Estimated levy increase of $394,303 or 2.9%.  Estimated mill rate of $10.49 using an estimated equalized valuation increase of.0033%. The final valuation will be received in October and the mill rate will be finalized at that time.

4. WHY $1,123,621 IN REDUCTIONS? (The Gap Between Revenues & Expenditures)  Revenue limits control the total amount of taxes and general state aid a school district can collect.  The 2009-2011 State Biennium Budget has limited the increase to the revenue under the revenue limit to $65,614.

5. FUTURE BUDGETS  As long as revenue limits are in place and expenses increase at a greater rate than revenues, the district will be facing a budget gap.  We expect to see continued reductions for the 2010-11 school year.  Federal ARRA funds used for State Stabilization are to disappear after the 2010-11 fiscal year.  Continue review of long-term financial and budget planning.

6. 2009-10 REDUCTION SUMMARY  The $1,123,621 gap between revenue and expenditures was addressed as follows:  Reduced staff and restructured departments.  Increased student fees and open enrollment revenue.  Reduced department and site budgets.  Realized savings from retirements and resignations.  Reduced life insurance premiums.  Used 2008-09 FEMA revenue.

7. 2009-10 Budget Assumptions February 18, 2009 DescriptionIncrease/(Decrease)Totals Revenue: Revenue Cap323,579 Special Education Aid35,529 Interest Earnings(39,000) Increase Student Fees by $515,000 Increase Open Enrollment Revenue48,000 Use of FEMA Revenue88,000 Total Revenue Increase 471,108 Expenditures: Salary/Benefits/Lane Movement/Retiree Health1,123,906 Utilities43,713 District Insurance21,616 Energy Education Program(85,000) Total Expenditure Increase 1,104,235 Total Budget Adjustment (633,127)

8. 2009-10 Budget Assumptions February 18, 2009 (continued) Proposed Expenditure Reductions: Reduce Teacher Leadership Positions10,000 Revise Curriculum Specialists Positions11,000 Reduce.66 FTE HS PE Teacher Position43,000 Reduce.50 FTE HS English Teacher Position50,000 Reduce 1.0 FTE Program Support/Diagnostician Position73,000 Reduce 1.0 FTE Librarian Position82,000 Reduce.50 FTE HS Guidance Counselor Position42,500 Reduce Building Service Helper Positions72,580 Reduce 1.0 FTE Custodian Position75,000 Reduce Instructional Secretary Position to 11 Months5,000 Reduce 3 Hours/Day Blakewood Aide Position15,000 Salary Freeze for all Administrative Staff Members48,000 Reduce District Office Food Budget1,200 Reduce Mileage Payments2,000 Reduce Magazines and Publications4,000 Reduce Curriculum Development Budget5,000 Reduce Utility Costs8,000 Reduce Conferences by 1/3rd (Fund 10)15,000 Reduce Activities and Athletics Budget (Option A - Revised)50,000 Savings Due to Anticipated Retirements65,000 Total Budget Reductions 677,280 Expenditure Additions: Increase Eight Hours of Paraprofessional Aide Time0 Increase.50 FTE Elementary Special Ed Teacher Position(44,000) Funded by stimulus Increase.50 FTE Speech & Language Teacher Position(40,000) Increase.40 FTE Occupational Therapist Position(39,500) Increase $35,000 for Grant-Funded MS Teacher Position(35,000) Total Expenditure Additions (35,000) Variance 9,153

9. State Budget Impact §Governor Doyle signed the 2009-11 State Biennium Budget into law on June 29, 2009. §Budget limits per pupil increase to $200. (Unprecedented) §State uses ARRA State Stabilization Funds to pay 2008-09 obligations to schools. §State decreased general school aid by $147 million. §State removed the QEO law and changed arbitration considerations.

10. 2008-09 Budget Assumptions July 8, 2009 (continued) DescriptionIncrease/(Decrease)Totals Revenue: Revenue Cap (Due to $200/pupil increase)(257,965) Use of Microsoft Settlement (Partial)56,312 Total Revenue Change (201,653) Expenditures: Balance from 2/18/09 Approved Reductions9,153 Life Insurance Change85,000 Business Office Restructure (Comptroller to Accountant)20,000 Allocate Utilities to Fund 5020,000 Reduce.50 FTE HS Guidance Counselor Position42,500 Reduce Salary/Benefit Projections25,000 Total Budget Reductions 201,653 Variance 0

11. THE BIG PICTURE 1. TOTAL FUND 10 & 27 NET BUDGET 2008-092009-10 $ Inc/(Dec)% Inc/(Dec) $ 36,151,006 $ 36,301.382 $ 150,3760.42% 2. THE TOTAL TAX LEVY FUND EXPENDITURE BUDGETS ARE DECREASING BY.54 % 2008-09 2009-10 $ Inc/(Dec)% Inc/(Dec) GENERAL FUND $ 33,959,679 $ 33,727,502 $ (232,177)(0.68%) DEBT SERVICE $ 4,691,460 $ 4,641,615 $ (49,845)(1.06%) COMMUNITY SERVICE $ 1,036.736 $ 1,105,166 $ 68,4306.6% TOTAL $ 39,687,875 $ 39,474,283 $ (213,592)(.54%) 3. THE TOTAL PROPERTY TAX LEVY IS INCREASING BY 2.9% 2008-09 2009-10 $ Inc/(Dec)% Inc/(Dec) GENERAL FUND $ 8,645,964 $ 9,043,491 $ 397,5274.60% DEBT SERVICE $ 4,242,032 $ 4,215,030 $ (27,002)(0.64)% COMMUNITY SERVICE $ 561,768 $ 585,546 $ 23,7784.23% TOTAL $ 13,449,764 $ 13,844,067 $ 394,3032.9%

12. Mill Rate Comparison 2008-09

13. Mill Rate History

14. Tax Levy History All Funds

15. 2009-10 REVENUE SOURCES State$22,852,201 Property Taxes$9,043,491 Open Enroll/Tuition$1,658,760 Other$526,490 Federal$2,132,440 $36,213,382 Revenue Budget Summary Fund 10 & 27

16. 2009-10 Expenses by Object Salaries$21,541,269 Benefits$9,559,869 Purchased Svcs.$2,637,937 Supplies$1,262,393 Capital Objects$315,263 District Insurance$338,441 Interfund Transfers$376,680 Debt Retirement/Other$269,530 Total $36,301,382 85% Expenditure Budget Summary Fund 10 & 27

17. Staffing Summary 2008-09 Total FTE 2009-10 Reduced 2009-10 Increased Approved 2009-10 FTE's Teachers233.22(4.49)8.25236.98 Admin17.000.00 17.00 Support14.10(2.60)0.0011.50 Aides29.64(0.42)2.5331.75 Clerical23.00(0.53)0.0022.47 Custodial19.00(1.00)0.0018.00 BSH16.19(4.00)0.0012.19 Total349.55(10.44)10.78349.89

18. SUMMARY  Staff and expenditure reductions made primarily due to revenue limits and declining enrollments.  Projected mill rate of $10.49 – final adjustment in October after 3 rd Friday enrollment count, final certification of state aid and property valuation.  Rising costs of insurance and utility costs will continue even with controls.  Future state legislation uncertain.  2010-11 will see another year of reductions.

19. WKCE Rankings (1-50)*  SM in 36-50 Range *Targeting efforts correctly… ACT  Composite  % Meeting All 4 College Readiness Benchmarks  % Voc Ed Taking Test Scoring 18 or Higher AP  Class Enrollees  Students Taking Tests  Tests Taken  Passing Rate Pre-Engineering  Enrollees 06-07 10 71% 06-07 21 16% 59% 06-07 117 62 110 52% 18 08-09 4 29% 08-09 21.6 23% 84% 08-09 408 139 195 49% 65

20. Creating the Future… Through a commitment to educational excellence, it is our mission to educate, engage and prepare all learners to succeed in and contribute to an ever-changing society. CAREER FOCUSED RIGOROUS CURRICULA AND EXPECTATIONS RESPONSIBLE LANGUAGE AND ACTION Career Focused: Purposeful, not rigid, but recognizing the possibilities and the impact of the present on the future. Rigorous Curricula and Expectations: For the college bound and students who have chosen other routes to success, this is for all of you. There are no short cuts. Responsible Language & Action: Modeling behaviors of responsible citizens and the verbal/non-verbal language of the world of work/schools of continuing education. SOUTH MILWAUKEE SCHOOLS

21. Questions & Answers

23. Creating the Future… Through a commitment to educational excellence, it is our mission to educate, engage and prepare all learners to succeed in and contribute to an ever-changing society. CAREER FOCUSED RIGOROUS CURRICULA AND EXPECTATIONS RESPONSIBLE LANGUAGE AND ACTION Career Focused: Purposeful, not rigid, but recognizing the possibilities and the impact of the present on the future. Rigorous Curricula and Expectations: For the college bound and students who have chosen other routes to success, this is for all of you. There are no short cuts. Responsible Language & Action: Modeling behaviors of responsible citizens and the verbal/non-verbal language of the world of work/schools of continuing education. SOUTH MILWAUKEE SCHOOLS